Not surprisingly, Conceptus shares jumped to just under $31 a share. The California-based company produces a permanent contraceptive treatment under the brand name Essure. The treatment uses metal and polyester bands to constrict a woman’s fallopian tubes, preventing pregnancy.

Regulators will have to approve the deal.

The purchase would add to Bayer’s existing range of contraceptive products. Conceptus has a workforce of roughly 300. The companies expect to finalize the merger later this year.